Trust- Is it worth the $?

[Climber]

I read thru the posts and did not see a clearcut answer. Is it really worth the hassle/expense of setting up a trust? I have been told my CLEO signs the docs pretty fast, so is there a solid reason I should set up the trust?

Below is a list of pro's / con's as I understand it:

Positives

*less upfront hassle (fingerprints, docs to sign, etc..)

*easier when you get multiple items

*ability of trustees to use your items

Negatives

*Possibility to close the trust loophole. This could force you go thru the regular application process or as a worst-case, get your items confiscated. The main reason I feel this could potentially come true as there seems to be the possibility to abuse the trust option.

*Expense

*Need to maintain the trust

What do you guys think? I'm ready to make a move but not sure which option is best. Anything I missed?

Thanks for the feedback.

[TGO David]

Yes it's worth it and for more reasons than what you listed. My time right now is very short so just do a search here and you'll find a ton of posts about it.

[bubbadavis]

IMO, the trust is definitely worth it. I went through one of the TGO sponsoring vendors for my trust. Super quick and easy and well worth the cost. PM me for more details if you want.

[Mike]

Its worth it.

Mike

[Guest buttonhook]

what is the approx. cost of doing the trust

[Guest Letereat!]

Look at the "Death tax rates". It is unbelievable how much they grab. What makes me furious is that tax has been paid on all your assets as you aquire them.. You die and the Bastards come back for more..a lot more!!

A trust is one way to secure more of your assets for whomever you deem.

Edited December 11, 2010 by Letereat!

[Climber]

Thanks guys. I'm definitely adding the regular trust to our will. I don't want the moneygrabbers getting any more of my assets than necessary after I kick the bucket. Seems you all are in favor of the gun trust so it looks like I'm heading in that direction. Thanks for the feedback!

[Guest 85rx-7gsl-se]

The purposes behind a standard trust and a NFA trust are quite different from my understanding. And for normal trusts the need for hinges often on what your estate will be at death. If you arent going to be above the exemption amount then there are no tax savings to seek. Trusts have some other advantages for special situations but the tax thing only applies (at least in 2009) to people with more than $3.5M worth of taxable estate at death.

[Electric B]

The purposes behind a standard trust and a NFA trust are quite different from my understanding. And for normal trusts the need for hinges often on what your estate will be at death. If you arent going to be above the exemption amount then there are no tax savings to seek. Trusts have some other advantages for special situations but the tax thing only applies (at least in 2009) to people with more than $3.5M worth of taxable estate at death.

+1

[Guest 85rx-7gsl-se]

Note: That is for an individual. With couples you can have the added complication if both spouses have a significant amount of separate assets so that if the first spouse to decease passes everything to the surviving spouse and the surviving spouse ends up with more than the exemption amount at their death. I definitely encourage you to discuss it with your lawyer but just realize alot of people got caught up in the hype of trusts and ended up just paying their attorneys alot more money to draft a more complex document that really wasnt needed.

[MikePapa1]

Trusts are a good thing, if needed. I rarely write them after I explain what they're really designed to do. Unless you have significant assets in your own name, as opposed to jointly held, frankly rare in my clients, then you do not need a trust.

NFA trusts are a completely different matter. A NFA trust is a trust document that has been customized to deal with the specific legal issues surrounding the transfer, possession, and use of firearms that are restricted by the National Firearms Act. These items include silencers, short-barreled rifles and shotguns, machine guns, and AOW's. They are very different trusts with very different purposes.

[Guest 85rx-7gsl-se]

Thanks for the backup Mike And I am interested in learning more about NFA trusts myself but the info is a little harder to come by. On an interesting note most attorneys who draft standard trusts have never even heard of an NFA trust before.

[MikePapa1]

I learned because I drafted one for my son. He's an engineering student and purchased a silencer with the intent to design one better. He's still working on that project but I was concerned that it would be illegal for anyone else to be in possession of it if something happened to him, so I did some research and drafted him a trust that will cover that contingency.

[Guest 85rx-7gsl-se]

Thats really cool Mike. NFA Trusts are definitely an interesting niche.

[bigwakes]

What does an NFA trust cost to setup and maintain?

[midtennchip]

Well, the cost depends on who drafts it. Typically, the cost is going to be from $400 to $700, depending on the attorney and the complexity of the trust (they can get really complicated if you have multiple people contributing items or money to it). Maintaining the trust requires very little effort or money.

[midtennchip]

Mike, I agree with you to a point. I use trusts a lot with clients who have younger children. The trust are part of the will and generally only come into existence after the second parent dies and a guardian is needed. I just don't like leaving money (including life insurance proceeds) to the children directly or to someone else for the benefit of the children. I prefer to have the assets in a trust that has specific requirements for the trustee. Other than this and the NFA trusts, I rarely use trusts.

[Guest 85rx-7gsl-se]

Great point Chip. Minor children are another special situation in which they are helpful. I just hate to see the retired couple that has nowhere near the individual exemption to their name get so caught up in trust fever that they pay out extra for a fancy trust that will just save a little time in probate.

Edited December 16, 2010 by 85rx-7gsl-se

[MikePapa1]

I don't disagree, Chip, my problem is I've not drafted a will for someone with minor children in the last three years. But, yes, a trust is very much in order where minor children are involved.

[LA_357SIG]

My take on the whole trust route is 1.) the local authorities have no buisness knowing what I own. 2.) the CLEO requirement is outdated and uneccessary. 3.) If I die I know my successors won't be put in any legal troubles for my NFA items and they wont be confiscated and/or destroyed.

And 4.) Why anybody would spent money on a federally regulated item, pay a $200 tax on it, go through time consuming paperwork with consequences including fines and imprisonment if used improperly, to be interpreted by one of the most incom... worst government agencies and trust a $20 computer program, I have no idea.